On this Independence Day at the ramparts of Red Fort, Prime Minister Narendra Modi announced the Next Generation of GST reforms by Diwali. The Prime Minister’s vision of creating a more efficient and citizen-friendly economy was realised as the GST Council on 3rd September approved rates rationalisation with a focus on the common man. These reforms have reduced tax rates in many sectors, easing the lives of citizens. Today, we look at the reforms undertaken for electronic appliances.
The Council has simplified the indirect tax system into a two-tier structure of 5 per cent and 18 per cent from a four-tier structure of 5, 12, 18 and 28 per cent. An additional slab of 40 per cent has been introduced for select items, including tobacco and luxury items. The new rates will come into effect from the 22nd of this month. To make consumer electronics more affordable, the GST Council has proposed the rationalisation of tax slabs on household electronic items. Under the new framework, air conditioners will move from the 28 per cent slab to 18 per cent.
Similarly, the government has also slashed GST rates on televisions above 32 inches, including LED and LCD TVs, which will see a cut to 18 per cent tax slab from the current 28 per cent. The taxes earlier levied on Monitors and projectors will also get reduced from 28 to 18 per cent, along with dishwashing machines. Addressing a press conference after the GST Council meeting in New Delhi, Union Finance Minister Nirmala Sitharaman said that these reforms have been carried out with the focus on the common man.
Industry bodies and Economists also welcomed the GST reforms. Economist Akash Jindal said that ahead of the festive season, these rate cuts will fulfil the aspirations of the common man. This move could record high sales in the consumer electronics market during the festive season, thereby adding momentum to India’s economic growth.
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